The Democrats' state budget plan included fees on oil companies for pumping oil from California wells and $1.50 per pack tax on cigarettes.
The governor saw the plan and said, "no way."
"I'm very, very much against any tax increase whatsoever, and I'm also talking about fee increases. None of that will fly with me because like I said it will be irresponsible," said Governor Arnold Schwarzenegger (R) of California.
So where does this leave consumers? You should prepare for tax increases, even if we never see the increased taxes in California, we could see them federal level.